Sarah BrealeyNorwich City face a �2.9m black hole in their finances next season - and the board is still in negotiations with the two major lenders to secure their continued support.Sarah Brealey

Norwich City face a �2.9m black hole in their finances next season - and the board is still in negotiations with the two major lenders to secure their continued support.

Chairman Alan Bowkett and chief executive David McNally shared the news at a press conference this afternoon to confirm the club's overall debt of �23m.

They also confirmed a �5m loss in 2008/9 and a reduction in turnover from �19.2m to �18.2m.

Bowkett said 'tough' negotiations had taken place with Axa and with Lloyds Banking Group, which resulted in 'a good football budget that allows the team to compete'.

The two lenders have re-negotiated their loans until the end of the current season, but talks are ongoing to try to extend that into 2010/11.

Bowkett said: 'The figures make grim reading but we've taken the club by the scruff of the neck. Thankfully our lenders have been very supportive.'

McNally said moves had been made to cut costs when the pair joined the board in the summer. He said a clutch of employees were made redundant during the autumn. He would not confirm the exact figure, but said it was 'fewer than 20'.

t For the full story, see today's paper.